How Much Money COULD a London Taxi Driver Earn?

[@TomtheTaxiDriver]

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[@colinmaynard2879]

Err you know your income from product placement counts towards a VAT threshold.😢🤪

[@hptt3710]

The best time to work is when you’re young and single, once you’re married with kids you could no longer do the long hours, the older you get the harder it gets to do long hours, and the older you get the more you realise health is your biggest wealth

[@exex9378]

Spot on that comment, it’s definitely not a healthy job.

[@TheL184]

I know a married and middle aged accountant that works 12 hours per day with two children. It kind of has to be a sacrifice to health. But he likes the fact he can't discuss what he watched on tv. I think you you work it in two ways do it young retire early or sacrifice it younger and go back out there. Works both ways

[@TheL184]

@@exex9378 arguably no job sitting down is a healthy job. The majority of us sit down for a living. Most Jobs we do are not particularly healthy. Working out at least balances the books.

[@stuartswanuk]

I can’t live with my partner with a 1 and 3 year old because of this job I need my sleep and work weird hours 😢

[@JB-wc2tc]

This is very true

[@clarenceishmael9615]

Some real gems there! Never managed to get into the VAT territory in 25 years behind the wheel, but now I'm kind of glad I didn't. 👏🏾👏🏾

[@Markstaxidiaries]

The great thing about being a london taxi driver is that you have the ability to earn money if needs require. You can basically call in your own overtime! Need more money-Work more hours. Great vid Tom 🚕

[@SamTheBalerMan]

Tom, if your earnings exceed the threshold for VAT, you’ll be able to reclaim VAT on your expenses - fuel, some running costs and the vat you pay on your LEVC. It would probably somewhere near balance out but needs a LOT more accounting and bookkeeping records.

[@jdb47games]

It would NOT balance out. If a cabbie is making a profit, the VAT on his fares will always greatly exceed the VAT on his costs.

[@mikebuick2332]

I never thought watching a fella talk about driving a cab would be so interesting. It’s like Clarkson’s Farm but for London Cabbies!

[@bobbrewer5182]

The VAT is an interesting point, Tom. Here in Australia, we have our Good & Services Tax (GST) equivalent. GST is factored into our metered rate, in our cabs, and therefore, when the GST scheme was implemented 20 years ago, cab drivers are now required to pay GST on every dollar we earn.

[@Caroleonus]

That's a bit cheeky from the taxman, if GST has the same "threshhold" concept

[@delusion5867]

​@@Caroleonus GST is always included in the price. It's also always 10% on all items and services. Businesses have to collect GST to send to the gov during tax season. I'm happy that's it always included in the price. I'd go insane in the US since they never have tax in advertising (frankly, it's just a reason to lie to people about the actual price)

[@jama211]

@@Caroleonus Either the customer is paying it for you or you earn under the threshold in which case, happy days. it's a win win.

[@jama211]

Just out of curiosity if you earn under Australia's GST threshold (I think it's 75k?) does that just mean you get to keep that extra revenue? Or is it paid regardless unlike other businesses?

[@markpunt9638]

Very interesting and if, for example one driver lives in Chiswick he can put his light on as soon as he gets in. Whereas another driver who lives out of town may have to drive for an hour before he can start picking up fares.

[@Essential.WP.914]

Tom! You have inspire me to open my own channel , I've been a cab driver for about 4 years now in my hometown about hour away from NYC and we got a good taxi system out here. If you have any tips, would surely appreciate it. Blessing my man and stay safe on the road in London!

[@TomtheTaxiDriver]

Just start and refine it over time 😊 Would love to visit Westchester one day!

[@Essential.WP.914]

@@TomtheTaxiDriver Thank you! You would surely love it!

[@JSB1729]

Which town are you in if you don't mind answering? Hello from Québec 🙂

[@04smallmj]

As a driving instructor, a similar answer applies to my job. There are many variables although unsurprisingly the national driving schools always give absurd figures in their adverts that pretty much nobody achieves. Usually they provide a turnover figure rather than profit but aren't transparent about it and/or they will assume a ridiculous number of lesson hours a week. 40 hours a week sounds reasonable for a full time job but 40 hours a week of lessons can easily become 55+ hours due to travelling to and from lessons, admin, diary management, washing the car etc. Personally I rarely do more than 25 hours otherwise I'd go insane and I'll be changing my job in the summer because I'm fed up of teaching people to drive and sitting in a car for hours each day, among other reasons.

[@04smallmj]

But to give a vague idea of what I earn, my franchise fee is £250 a week, fuel is about £70 a week and I charge £32 per hour for lessons.

[@mkim6017]

Thank you for your honest message

[@billybattams-scott]

I guess being a cabbie, you can pick and chose your hours. It’s swings and roundabouts with your earnings.

[@DuartedeZ]

Well done on your setup mate. Its nice to see your diverse income sources.

[@jaredwoodward919]

I used to play badminton with a retired cab driver and he once said he hated taking payments by card or check because it had to go through the bank and tax man. But cash could be hidden. My late wife also worked with a part time cabbie and she was told the same thing.

[@wakeywarrior]

Taxi drivers, always disclose all their earnings to the HMRC. It’s amazing how many I’ve seen earning £12500.

[@bambambenito9453]

im a taxi cab owner and operator in island of hawaii,maui and i charge $100 per hour for island tours and can be done by 3-10 hours regardless by what they want to see on the island like volcanos ,black and red sand beach national parks, waterfalls, turtle beaches, lava fields, whale whatching, rain forest, or a rare sights of billy goats on the mountains

[@JustJayme]

Another great video Tom!

[@Tuppoo94]

So, in essence, the VAT liability threshold makes it so that being a taxi owner-driver isn't about maximizing your turnover, but about minimizing your costs. For example, 60k of costs on a turnover of 85k leaves a much smaller profit than 30k of costs.

[@btkb1427]

I never knew that about VAT. I honestly thought it was anything above 85k is taxed at 20%. That's insane...

[@danidriver4438]

The answer is where you talk about the decorator, who adds the 20% VAT. As a tour guide, if a 50% of your income comes from pre booked tours, you add there the 20% VAT that you can claim back later. This helps you to pay a 10/9% difference instead of a 15% (20%-5% VAT for your energy expenses).

[@quik16]

This has probably been pointed out in other videos, but I really think this style of presenting would suit a segment on say, The One Show. Informative, concise, good, confident presenting style, genuinely interesting content that could be condensed into a 5 minute film. You could pick any number of topics you've done a KZbin video on that is to do with cabbies and help dispel some myths around the profession, bring it into the public eye a bit more, and your presenting style is perfect for it. It could even be a recurring segment on London itself!

[@TomtheTaxiDriver]

That's the aims of the channel, to dispel the myths of London taxis and keep this glorious trade alive!

[@danielfoxwell3007]

I left the trade in March 2020 (covid)...never went back. After 23 years it was the best thing to happen to me. I've got my life back. My blood pressure is normal now and my stress levels are manageable. Wait till you settle down, maybe have kids, you become a slave to the meter. That's my take for what it's worth.

[@TheL184]

Not everyone wants kids mate. We're you a London cabbie?

[@danielfoxwell3007]

@@TheL184 Yes, green badge.

[@jimmybaldwin737]

But surely the freedom to work whenever you want. Is great. Isn’t it ? Wouldn’t that be ideal to someone who has kids. When you say a slave to the meter. Do you mean. You would have to work a certain amount of hours to cover the cost of the cab first before you start earning ?

[@jama211]

Some people find the job more stressful than others - if his youtube channel keeps growing at this rate he won't take to work behind the meter as much as others do, which could strike a nice balance for him! Who knows.

[@PripurnanandaGiri-dl5gf]

Thank You Tom. Good Luck to You.

[@KSIOjedibt]

Tom one thing to clarify is that you aren't taxed VAT on income you earned before registering. So if you hit the threshold (£85,001) you would have to register, but you would not need to pay VAT on those earnings - it would be all earnings from that point. Your point still very much stands though, as if you earned a similar amount over the following 12 month period, you would pay full VAT on those earnings. Without a way to charge it through the meter, you're right - it's a completely unfair system.

[@TomtheTaxiDriver]

Thanks Jay 😊

[@Benhutchie22386]

Really interesting video Tom - love your content!

[@clembu2275]

I used to be a passenger boat skipper, pay was poor but occasionally we got a decent tip. Once I got £50 for a job which was close to what I earned for a whole shift. Tips vary but if you get someone rich that likes your service, of course you’ll earn more that day. Hard to calculate as you say.

[@DurhamGooner]

Got a bit of tax/VAT education from you there Tom! Thanks very much!

[@Progressive.G]

That VAT threshold rule is mental 😮

[@aayaanahmed7270]

Very insightful video must admit 👍

[@tomgruitt6563]

Nice one Tom!

[@zhanruide84]

Like many of your videos, some good business and life lessons here.

[@jamesjohn4994]

Earn a lot yes but expenses are crippling. There’s many people very well off in the taxi trade and none of them are driving cabs. 😊

[@SouthLondonCyclist]

how do you mean? selling the cabs?

[@regularguy3665]

Sort of like the gold rush. It was the people selling the axes and shovels and Levi’s who made bank. NHS is similar. So many companies are propped up by the work they do for the health service.

[@GazGaryGazza]

lol “I don’t care who knows how much I earn but I’m not telling you out of respect for other drivers” hahaha that’s so gracious for you 😂

[@lewis838]

Interesting stuff Tom, especially with how you guys have to deal with the VAT, seems bizarre to me that they would just dump a massive load of tax after you cross the £85k threshold, surely it would make more sense to do it gradually, that way the government would actually earn more of this tax from taxis as people wouldn't mind as much going over the 85k limit?

Right? There’s a class of workers purposefully not earning what they could and therefore limiting the amount of income tax they’re paying. For certain types of self employed people VAT would work so much better as a progressive tax

[@daleykun]

It's more designed to work for larger companies who are working with/purchasing from other companies also being required to collect VAT. The way it's supposed to work is that any VAT you incur from buying supplies from other companies you offset against the VAT you charge to customers and you only set aside and pay the difference to HMRC. With most businesses that are VAT registered, assuming they charge VAT and make VAT charged purchases, all that happens is they collect the VAT on HMRC's behalf on sales they make (which they'll tack 20% or whatever the applicable rate of tax is for that service) on top and pay that and instead of recording an extra 20% in expenses to deduct off their earnings when they buy a supply that has had VAT applied, that 20% deduction just comes on the tax they pay instead and actually makes next to no difference. It's an unfortunate position for Tom and other small businesses that might not get the benefits of buying from other suppliers who charge VAT but cannot charge the extra VAT to customers themselves but are required to collect it and thus take less effective income for themselves.

[@blackhawk5279]

as a aspiring ride hailing driver i find this informative and helpful. Gives some indication for comparative purposes. thanks

[@whkoh7619]

That's not quite a complete explanation. Once you pay output VAT, then you can also claim (recover) input VAT on your purchases too. That's not insignificant.

[@sheilam4525]

Very interesting video, Tom, thank you👍

[@afr11235]

That VAT threshold is strangely high. In most countries the rate is set so that someone doing a small part-time "side job" doesn't need to register, but anyone working full-time would fall in-scope. I know sales taxes are quite different, but here in the US the basic rule is that if you make a taxable sale you must register. Period. That said, under a VAT system, you get input credit. If you fall under the registration threshold, you pay VAT on all of your expenses. If you cross it, you can take a credit for any VAT paid on fuel, the vehicle, insurance, etc. This is why the flat VAT scheme for taxis is 10%, because it assumes that on average half the VAT would be credited back if you itemized all the receipts.

[@michaelorton6808]

very interestin Tom keep it up.

[@TheSkarabeush]

Just an idea, get your last 5 years clean profit add it together and divide by 5 that would give some kind of idea I think.

[@Lenry1337]

very interesting point on the VAT!

[@Dave-ko2pr]

The media are good at making false wage statements online. Just like a few years ago with the HGV driver shortage was on. Daily mail saying average wage was £70 k per year. Not accurate. Most standard drivers don’t earn that kind of money, for for doing average hours.

[@nathan_ro]

Friend of mine is a tube driver and is on 60k thought might be a random bit of useful knowledge

[@Wtizreal]

I WAS TOLD PEOPLE USED TO BUY MULTIPLE PROPERTIES AS A TAXI DRIVER THEN RETIRE AT 50

[@LazarkGaming]

There's a more tax efficient model I'm seeing people use in the hire and reward trade for VAT. I'd speak to an accountant about it, but I use a model that's perfectly legal and my VAT isn't 20% on the big turnover, but instead a smaller more practical figure - but in your case it might 'only' apply to the meter, so other kind of jobs wouldn't work under it.

[@noahstrainadventures3031]

Great video Tom thanks

[@michaelfrancis8692]

Cash work has gone its all Apps and credit cards you can't show peanuts anymore HMRC have a special unit looking into low turnover. Last thing you need is an investigation and a 10k tax bill.

[@thomasconboy4636]

That’s a good and interesting class on your profession

[@philraff7093]

Well explained Tom

[@SouthLondonCyclist]

You can reclaim the VAT on purchases for your business. So a lot of people like this won't actually end up losing the VAT amount. Especially if they need a new camera!

[@TheAirportfan]

The VAT is misrepresented in this video. I will round both (slightly less/more then the 85000) to 85000 to keep it simple. -> 85000 turnover with an arbitrary 35000 expenses. Without VAT: 85000 turnover - 35000 expenses = 50000 profit With VAT: (1 - 20% VAT) * (85000 turnover - 35000 expenses) = 0.8 * 50000 = 40000 profit That (and added burocracy) is why you need to earn way past the the VAT limit to earn more profit then without VAT. Of cause at that profit there still must be paid income tax.

[@stevehillier7018]

Michael Elphick in the 90s said roughly a Cabbie would earn 30k as an average. Let’s just say I’ve always seen cabs on driveways in nice semi or detached houses all around the suburbs of London. So we would assume it’s a good living considering all that headache of doing the knowledge !

[@TomtheTaxiDriver]

Back when house prices were considerably cheaper. I shared a house share in Highgate. Property in the street was worth around £2.5 million. My taxi was parked on the drive. My neighbours owned their house. They bought it 40+ years ago.

[@stevehillier7018]

@@TomtheTaxiDriver not a dig just an observation. Admire your knowledge incredible

[@zulfqarali905]

Hi Tom keep it up 😁 you are a superstar London taxi driver well done Ali Walsall west midlands england

[@raheem201231]

Technically speaking VAT is not a TAX on you. But the customer. You can claim back VAT on your expenses. You’ll need a good accountant for that, most aren’t.

[@TomtheTaxiDriver]

But as a cabbie you can't charge VAT on the meter. Unlike say a plumber who could add it to their invoice.

[@garybroadhurst3548]

@@TomtheTaxiDriver But in effect you would be doing. If you are VAT registered you MUST charge VAT. So, if you take, say a £12:00 fare from a customer then you have effectively charged them £10 + VAT (if it's 20%) without them realising. So then, all your profits that you calculate personal/business tax on are based on the £10 turnover, not the £12. This doesn't totally mitigate the situation of course, but it helps a bit. With a lower fixed VAT rate (if that is indeed possible) and some nifty work-arounds (avoidance NOT evasion - they are very different) VAT could make little difference and might be worthwhile if you were somehow earning quite a bit over the £85k threshold. I used to run a business with a turnover of about £100k, with fairly high operating expenses, when the VAT registration threshold was about £45k and I was actually BETTER off being VAT registered (I had to be, of course, but I worked out the numbers as if I wasn't, to compare). If you had a petrol cab you could claim the VAT back on all your fuel, for example.

[@thomascaptain1110]

I hope the fact that you spoke about VAT suggests a cabbie can earn that amount. It’s useful to know before embarking on the knowledge. The earnings have always been a mystery

[@TomtheTaxiDriver]

Yea all depends on circumstances, not every driver is just working streets/meter. Some are booked out doing tours, some get corporate work that they share with other drivers. As a result turnover wildly varies.

[@thomascaptain1110]

@@TomtheTaxiDriver thanks Tom. I’m sure it varies with the different routes cabbies can go down (no pun intended) but before committing to the knowledge it would be good to know how much a cabbie can potentially earn annually based on streets/meter working 50 hours a week say. The bread and butter if you like. Personally for me it wouldn’t have to be around the VAT threshold as the value is the flexibility of the job but I would certainly need to earn a certain amount especially with the expenses you outlined in another video. Thanks for engaging.

[@Tch5802]

You can deduct many if not almost all expenses from VAT. petrol and repairs and automobile costs are all deductible. If you have income of £85,000 and expenses of £75,000, you should only have to pay VAT on £10,000. You can deduct the expenses on which YOU paid VAT like petrol etc.

[@TomtheTaxiDriver]

Not on your VAT bill. That’s turnover. Could have 91k turnover and 90k costs. Still liable for VAT at 20% unless in a flat rate scheme

[@Tch5802]

@ please ask a tax accountant about this. I am fairly certain that you would have to keep detailed records (which may not be worth it) but you should be able to deduced VAT petrol, maintenance, car purchase etc from your vat bill. The reason they call it a value added tax is because you’re only supposed to pay tax on the additional value you added, not on your expenses. The reason they do it like this is that at tax rates above 10% there is more and more cheating unless you have to pay in advance and then get to claim refunds.

[@lloydeelloyd]

I have been a cabbie a few years now , I only do 40 hours a week cos of my life outside. Was single the first half of those 3 years and in a relationship the second half . Anyhow my social life and seeing the gf is always at the weekends, so I just work in the week. Still make a decent living most weeks just doing those hours . Haven't really worked a weekend for last 2 years as my weekends are always stacked , starting from Friday Evenings till Sunday night

[@TomtheTaxiDriver]

Sounds quite similar to mine Lloydee, weekends are a rarity for me to work!

[@JoshuaHall72]

I’m 17 and want to do the knowledge and have my badge by 20. Every cabbie never wants to say their annual figure. Can you tell me yours? Just to know what I’m getting myself into

[@lloydeelloyd]

@@JoshuaHall72 Just wanted to say that , if you get your badge at 20 you wouldn't be allowed to drive a cab till your 21. However 3 years is the absolute minimum to do the knowledge these days , could take longer may as well start now

[@JoshuaHall72]

Yeah I’m going to buy myself a scooter and complete the blue books. Still, can you tell me your yearly annual figure?

[@ryanoverlay4592]

Why is it disrespectful to share your income? Doesn't it help everyone learn more about the trade and understand how well they're doing or how they could improve?

[@EuanBCFC]

I guess because they all earn different amounts, one doing fairly well and sharing it could be seen as showing off to those not doing so well

[@zackaplowitz]

@@EuanBCFC Or it could help those being underpaid to realise that they’re being exploited. The stigma around discussing pay is directly opposed to the interests of workers.

[@matt3642]

It's pathetic mate that's what it is

[@georgelloydgonzalez]

@@zackaplowitz Not everything is a conspiracy

[@Gordon..]

Because of the undeclared cash and what they put on their tax returns

[@EdthePlumber]

The real answer is how much go though the books!

[@NoNonsenseJohnson]

Mostly card payments nowadays.

[@gogameing5657]

I presume only old drivers pay off their taxis completely or cabs?

[@manephewlenny6401]

You forgot to factor in ram-raiding ATMs.

[@kiradotee]

2:16 looking at one particular size of ones manhood doesn't necessarily dictate the average size of manhood. Such a perfect comparison. 😆

[@adamyt0]

so does a cab driver register as self employed or can they do limited company? and if so what are implications for VAT

[@TomtheTaxiDriver]

Majority of cabbies are self employed. But self employed of limited company, the VAT liability will remain the same.

[@adamyt0]

@@TomtheTaxiDriver thanks for replying. I find it mad that once 85k it hit turnover-wise,VAT is liable. ridiculous! would've thought profit-only and then at least expenses can count against it

[@AM2K2]

You must go through a fair amount of podcasts/audiobooks...one perk of the job I assume?

[@TomtheTaxiDriver]

Massive amounts! Best learning!

[@tancreddehauteville764]

It's not just about the money, it's about freedom of working when you like, and loving the wonderful and terrible, but ever vibrant city we call London. London taxi drivers eat, sleep and breathe London every day they work. You can't do the job without having a passion about London.

[@williamhudd3180]

Does anyoke know how to fet to get tour guide badges

[@diddsdaddiddsdad6865]

5 years ago before I retired I couldn’t get nowhere near £200 . I was lucky to get £100. Ranks full, nothing on the street. Uber everywhere. Have things got that good since I retired. I think I better ask for my badge back 😂

[@mtty1988]

At start of video when you say people say u should be a bus driver or hgv driver it’s not all bout money but enjoyment and also the situation ie flexibility as you ur own boss and can choose your own shift pattens and times hours to work

[@Zyphera]

They should remake vat to only be applied to the part going over.

[@TomtheTaxiDriver]

Would be interested to know how long it’s been £85k.. surely with inflation, a lot more professions will be going into that number

[@NoNonsenseJohnson]

@@TomtheTaxiDriverabout 2017, chancellor frozen it until at least 2026. Stealth Taxes.

[@jama211]

But... how much are you earning? Haha all good if you don't want to say. But this was super interesting regardless, and doesn't have a clickbait title, so nice work!

[@kbee6223]

I heard all cab drivers have a yearly gross profit of £12570, is that true?

[@Willdu87]

Do you have a limit to driving hours per day or averaged over a month like hgv drivers do?

[@pandarcywalkington6595]

No it’s unlimited

[@mohammedhussain-wp6hn]

A private hire driver can earn 400 a week after expense. I earn 700 a week including expense. After car rental and petrol ,i make 400 a week.

[@newanas5271]

Is it true you can earn up to 3800 a week ?

[@Nathandawe3]

@@newanas5271

[@emeraldbonsai]

You can just express how much is earned perday to deal with the edge cases

[@dionlindsay2]

HMRC could work out a pretty good average if they wanted too, couldn't they?

[@theo1881]

Am I right in saying tips are taxable but not subject to NI? Always checking with service staff now if they get them when paying by card etc

[@robertfisher632]

I gave up Taxi got my Gas ticket I made £80 k pre tax last year and I should be making a bit more this year.

[@shaftt4067]

you mean gas engineer?

[@robertfisher632]

@@shaftt4067 Yes.

[@shaftt4067]

Where you make the course? Do you done the college or just courses That s,a good move happy to see people get proper trades

[@robertfisher632]

@@shaftt4067 I was a time served plumber before I was a taxi driver so it was just a refresher course yo get my gas safe.

[@jimmybaldwin737]

Wow. I’m doing the opposite 😂. I did a gas engineer training. Got my gas safe. But I’m doing the knowledge now. Why did you give up the taxi trade ?

[@Shyted]

Could you run two companies and have each under the VAT threshold?

[@patpending8134]

Yes, providing they were limited companies, i.e. incorporated companies registered with Company's House. That was, each of those companies is a separate legal person. If instead you were a sole proprietor, then the legal person is YOU, so you couldn't, say, claim to have two separate businesses and each was under the VAT threshold. That would be diagregation - artificially trying to split up something you can't - and the VATman would rub his hands with glee and go after you. VAT has existed in the UK for 50 years, so all sorts of tax avoidance schemes, fraud etc. has played out and there's lots of case law/legal precedents, in other words, it's all been seen and done. Actually, nearly all VAT is collected by BT, Tesco, British Gas etc. from their customers/consumers. Small builders, plumbers, or taxi drivers, even if they are VAT- registered, pay relatively nothing in comparison into the VAT pot, but the same rules must apply to them as BT, Tesco etc. Also, Tom glossed over that VAT-registered busineses can reclaim VAT they are charged, e.g. on fuel, goods/services etc., so they get that 20% VAT back. It's not simply £85,001 turnover = £17K VAT due.

[@JenDre]

Would being VAT-registered mean though that you could claim back all the VAT from the petrol? Should be quite an amount no :) & is there VAT on charging electric? Not sure haha

[@daleykun]

Theoretically he could, however for most forms of energy VAT is only 5% not 20% that he'd have to collect so it doesn't really help to offset that much. Also, even if he could do that, because he can't charge the extra 20% VAT to the customer, that is still coming out of earnings and effectively reducing his hourly rate compared to someone earning less than £85k. At that point as a sole trader, I think I'd probably choose to work less hours for more hourly pay and still have a comfortable living - like Tom said I think quality of life becomes the deciding factor not the money

[@afamefunaibeabuchi873]

09:03 - the cab disappeared.😢

[@frankieking1941]

Love the videos Tom A point though, on your comparison between Dinosaur Dave and Butter boy Ben, you made no provision for depreciation. This would close the gap between them.

[@TomtheTaxiDriver]

This is true. There's a lot of ways to skin the cat. Drivers who rent for example. or drivers who live in town so can claim 100% of their vehicle and fuel, vs the commuting driver 😊

[@azizbassman]

Wow, Tom. Very well explained I'm so impressed with your intelligence and research 👏 love the videos... I think we need a video on drivers' etiquette as it's going down the pan.

[@greigs9384]

I do three days a week. As you get older I think driving 5 or 6 days a week in London just loses its appeal. Obviously I’m more dinosaur Dave 😂

[@wloffblizz]

At the same time, working just three days a week and making a living (even if you make a bit less) is the dream for a lot of people!

[@jimmybaldwin737]

How much do you earn doing 3 days a week. I’m doing the knowledge atm. Or can’t you say 😂😜. It must be ok. If your only doing 3 days

[@greigs9384]

@@jimmybaldwin737 I’m semi retired. I have an early pension from another career every month 👍

[@johnrowland3105]

Off the meter jobs ?

[@lin90210]

I guess you could not sleep and earn all day or just do one day of work a week. So how much people earn is hard to calculate 😅

[@sw01ller]

yeah, i'll stick to driving trains thanks!! its so much easier than the shite you have to go through!

[@chrisbaxter5041]

Anything under £300 a shift would not be viable time you pay all your expenses and take a wage

[@TheL184]

You should Google the definition of a wage

[@80skid83]

Sad but true

[@TheL184]

@@80skid83 bull shit lol. You are also not exchanging wages. wages and gross earnings are very different. So many people are drips

[@lgx2410]

How can you live comfortably in or around London for less than £100k a year?

[@TomtheTaxiDriver]

I can’t/don’t. Live way out of london

[@MillwallH22]

These older drivers putting younger people off the trade do my nut in! See one tell a kid on the knowledge to give it up. Must want us to move aside and just give the work to Uber! Divs. I’ve been doing it 9 years and never been busier!

[@godish_tv8623]

VAT is just ridiculous you should be able to work and earn as much as you want and not have to worry about earning too much money that you lose money from your net income. Cab drivers need to starts talking to their local MPs to get this legislation changed or at least to give them a tax exemption or you pay VAT. Also idk how being a cab driver is classed as your own business when you work under the TFL umbrella. Its not like if you were a painter and decorator where you get to make your own rules for your company and how you do your job its not like there are regulation on how you have to paint a wall or what you can charge. Being forced to work at a set rate doesn't sound like its completely your own business.

[@Caroleonus]

"Unless there's another business interest, or he can funnel the VAT bill elsewhere..." he says, on KZbin 😏

[@omarbaly3895]

They create meter £10 h when is wok is steady And tell you we we are the cheapest meter in Europe

[@tobyskinner94]

Have a great weekend Tom :) I'm still trying to spot out for you on the roads!

[@chester6343]

You could have just said here's what I earnt on a average or even bad month and let people speculate on the rest.

[@justanothercourier]

Self employed van courier here... Great video as usual buddy. Long time lurker on your channel and a lot of your issues are the same as mine with regards to limitations on earnings. Just a bit more of a layman's explanation of VAT registration for people... Being VAT registered can be advantagous when being a sole trader or running a business but it depends on who your customers are... it wouldn't really work for Tom as if he were VAT registered it would mean he would have to charge VAT on all of his fares which, because the average punter who uses him couldn't claim the VAT back, would make him less competitive with pricing and therefore potentially loose him custom. The work I do on the other hand is all business to business meaning that it is advantagous for me to be VAT registered as it is likely that the companies I'm working for are too. Meaning that when I charge them VAT, they're able to claim it back and so on and so forth for their customers. You can also claim a percentage of the VAT back on your expenses too (and in transport most of your expenses have VAT). Meaning you can claim VAT back on fuel, vehicle purchases, tyres etc... I'm on the flat rate scheme which means that I can claim (for my first year anyway) roughly 11% back on all the VAT purchases I have. Also just for reference you can register to charge VAT if your turnover is less than £85k, it just becomes mandatory if it is more. Great video pal, keep them up.

[@prostakuk]

Even if tube drivers did earn 100 grand, so what in the end? I kind of want the person driving me round to be well fed and rested, able to afford to live near a depot, not worrying about paying some bill.

[@ginashiel105]

The taxi drivers outside Heathrow charging anything they want ..its a disgrace they are getting away with too...they need to be regulated and very tightly.....

[@hwgusn]

Do you have to pay a rank charge at every rank?

[@jimmybaldwin737]

Do you mean to wait on the rank ? I wouldn’t of thought so

[@mtty1988]

2 Hours Heathrow wait would you not use that as your brake and time to do ur finances books or the likes. Maybe if your studying use it as study times book holidays or the little jobs you you never get around to aka usingthe time wisely

[@TheL184]

Im pretty sure it's working out for him. After all you are leaving a comment on his popular KZbin channel ;)

[@LonewolfBrownie]

You must earn more than any cab driver will ever say. It is mostly cash in hand. So whatever amount a cab driver tells you is for HMRC tax reasons. It will obviously not include the cash amounts... nobody, self employed with a good accountant declares their real income. Nobody. And the truth is that nobody would ever know the real amount you earn... including hmrc.

[@stewartmurray5830]

If you are VAT rated you get the VAT back on everything you buy, fuel, vehicle, parts for maintenance, phone bill, house bills if business related. laptop, etc etc etc

[@pablojp3498]

Still not worth it